In 2024, Canadian ETF assets surpassed C$500 billion for the first time, driven by significant inflows and new fund launches.
Growth of Canadian ETF Assets
According to Bloomberg, Canadian ETF assets broke the C$500 billion mark ($346 billion) in 2024, buoyed by heavy inflows and a slew of new fund launches. Total inflows for the year amounted to C$76 billion, up 45% from the previous record in 2021, as reported by the National Bank of Canada.
Surge in US Stock ETFs
The country's ETF market recorded record inflows, with US stock funds leading the charge and hauling in nearly C$22 billion in net new money. By year-end, US stock ETFs had grown to approximately C$130 billion in assets, surpassing Canadian equity ETFs at C$102 billion.
Challenges for Canadian Crypto ETFs
Canadian crypto ETFs were the only segment to experience outflows, totaling C$1.1 billion. This was due to strong competition from US-listed Bitcoin ETFs, which gained earlier approval and offer more competitive pricing. However, Canada still stands out as a pioneering country in accepting crypto ETFs, with Bitcoin and Ethereum ETF trading allowed since 2021.
Despite challenges in the crypto ETF segment, the overall Canadian ETF market achieved remarkable results in 2024, surpassing C$500 billion, predominantly driven by the robust growth of US stock funds.
